Algeria: Protests Over Austerity Measures Persist

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Some violence has been reported during unrest over budget cuts and new taxes.

A third day of protests over government-imposed austerity measures gripped cities mainly in northwestern Algeria, Asharq al-Awsat reported Jan. 4. President Abdel Aziz Bouteflika’s signing of the 2017 budget, which includes new taxes on a variety of consumable goods and an overall 14 percent spending cut, triggered the unrest, which started Jan. 2. Though social spending is still deemed a priority in Algeria, budget cuts were made across the board to help the country weather another year of lackluster prices for oil and natural gas, its chief sources of revenue.
Algerian Interior Minister Noureddine Badawi warned Jan. 3 that anyone trying to destabilize the country would face legal consequences. This warning came a day after demonstrations in Bejaia province, east of the capital of Algiers, became violent. The headquarters of state-owned utility company Sonelgaz in Akbou suffered fire damage and the tax and court buildings were also damaged. On Jan. 3, riots erupted in the city of Tichy, where demonstrators blocked a major road and in the western city of Tiaret. Demonstrations were also held in Algiers. So far, about 100 total arrests have been reported, including of 50 protesters younger than 25, and the violence has left about 40 protesters and an equal number of security personnel injured.
Demonstrations in Bejaia coincided with strikes by businesses, which shuttered their shops in several cities in the province. The government is generally efficient at shutting down organized labor protests, which are common in Algeria, but the austerity demonstrations appeared to be more spontaneous, organized on social media by young Algerians. Property damage in labor protests is unusual.
Algeria, hamstrung by a high deficit and an imbalanced economy, has little room to satisfy protesters’ demands. The violent unrest triggered by the austerity measures has thus far been sporadic and has not spread to major cities. Because Algerian stability is important to overall North African security, the protests bear watching. In the event they intensify or become widespread enough to destabilize the country, they could pose a threat to Algerian energy exports. Southern Europe, especially Spain and Italy, rely on natural gas supplies from Algeria.

Source: Algeria: Protests Over Austerity Measures Persist | Stratfor